Bear -Market Survival: Basic Trading Techniques to Help Krypto Storm Shipment
As the global cryptocurrency market continues to fluctuate wildly, many investors continue to curious about how to navigate these traitorous waters. As prices fall and volatility soar, it is easy to feel and uncertain in the survival of the bear market. However, with the right strategies and techniques, you can minimize your losses, retain your capital, and even profit from inevitable relapses.
Understand the bear markets
Before we get into basic trade techniques, it is essential to understand what the bear market is. For a longer period of time, the bear market falls below the historical average when the price of cryptocurrency or other digital devices, indicating a decrease in investor emotions and trust. At this stage, investors generally sell their wealth with losses, which can cause significant losses to those who keep them.
Basic trading techniques of bear markets
So, how to survive a bear market? Here are some basic commercial techniques that have proven to be effective in navigating similar markets:
- Position Measurement
: One of the most critical aspects of a bear market investment is position measurement. This includes the distribution of its portfolio to specific asset classes or cryptocurrencies, based on their expected price movement under the bear market. By limiting exposure, you can reduce potential losses and retain your capital.
- Stop-Loss Orders: Stop-Loss Orders are essential on the bear market to limit possible losses. These orders automatically sell a device at a predetermined price after reaching a certain level below the current market value, promoting significant losses.
- Diversification: Diversification of the portfolio is essential during the bear market when prices can fluctuate wildly. If you distribute your investments to various asset classes and cryptocurrencies, you can reduce your exposure to a single investment and minimize potential losses.
- Risk Management: Risk management is critical in bear markets. This includes the setting of risk-based stop-loss orders, setting position size, and using other techniques to alleviate possible losses.
- Unification
: Regular balance of the portfolio during the bear market can help maintain the target distribution and reduce the impact of the volatility of price on investment.
- Long -term perspective: Long -term perspective is essential when navigating the bear market. Focusing on the larger picture, you can make shorter fluctuations of prices and more well -founded investment decisions based on market funds.
7.
More strategies for bear markets
In addition to these basic techniques, you can find some additional strategies that have been effective in navigating bear markets:
- Heding: The use of cover transactions or other financial instruments involves alleviating possible losses during the bear market.
- Leverage: Leverage can be an effective way to strengthen profits, but also increases the risk of significant losses. Use the leverage and only if necessary.
- Market Moving: Market Movements are persons who use social media, online forums or other platforms to promote their investment ideas. While some market movers can generate significant returns, others can mean the course of resources.
- Fame Management: In the cryptocurrency region, the development of strong fame is critical for attracting investors and promoting investments.